State energy mandate means NC ratepayers are paying extra to subsidize green energy industry
RALEIGH – Americans for Prosperity North Carolina responded today to the news that Duke Energy Progress customers in North Carolina will see lower base rates on their power bills.
“It is a positive for our state that energy fuel prices have decreased so much that base rates for power customers can go down,” said Donald Bryson, North Carolina State Director for Americans for Prosperity.
“But while cheap energy is the engine of a prosperous economy, the power bills for customers are not as low as they could be otherwise, thanks to the state’s renewable energy mandate.”
According to the Duke Energy Progress press release:
Duke Energy Progress filed for an increase in the charge to customers for the utility’s compliance with the state’s renewable energy portfolio standard. As approved, the REPS charge will increase $0.34 per month for residential customers, $0.55 per month for commercial customers and $36.30 per month for industrial customers.
The increase to the REPS charge reflects increases in actual and projected compliance costs driven by the increase in the utility’s overall compliance obligation. The REPS requirement increases from 3 percent of North Carolina retail sales in 2014 to 6 percent of North Carolina retail sales for years 2015-2017, with additional step ups effective in 2018 and 2021.
Bryson continued, “It is clear that energy rates in North Carolina are low, but they could be even lower if our state government had not passed an energy mandate in 2007 that continues to ram particular types of energy production down the throats of ratepayers.”
Americans for Prosperity has been a proponent of repealing the North Carolina’s Renewable Energy Portfolio Standard. This year, two other states – Kansas and West Virginia – ended their mandates.
Bryson continued, “We will continue to fight this battle against crony capitalism. It is not the role of government to pick winners and losers, and it is even more damaging to our economy when it is done within the energy sector – the heartbeat of our economy.”